NORTH CONWAY, N.H., July 26, 2024 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the "Company") (OTCQB: NWYF), the parent company of Northway Bank (the "Bank"), today reported net income for the quarter ended June 30, 2024 of $859 thousand, or $0.31 per basic common share, compared to $1.7 million, or $0.63 per basic common share for the quarter ended June 30, 2023. For the six months ended June 30, 2024, the Company reported net income of $2.4 million, or $0.86 per basic common share, compared to $3.1 million, or $1.13 per basic common share for the same period in 2023.
The Board of Directors declared a semi-annual cash dividend of $0.35 per share, payable on August 12, 2024, to common stockholders of record on August 5, 2024.
President and CEO William J. Woodward commented: "During the first six months of 2024 we continued to focus on retaining and increasing our core deposit base while reducing our reliance on wholesale funding. We also have taken a cautious view on lending with added emphasis on strengthening our relationship with existing customers. We have also attempted to encourage a full banking relationship with new customers. The increased cost of deposits has impacted earnings, but we are confident that repositioning the balance sheet will provide the best path forward to increase shareholder value over the long term. Finally, I am pleased to announce the payment of our semi-annual dividend which has been uninterrupted since Northway Financial was formed in 1997."
Financial Highlights
- Total Assets were $1.3 billion, Loans, Net, were $919 million, and Total Deposits were $1 billion at June 30, 2024.
- Total Assets decreased $94 million compared to June 30, 2023, driven by decreases in Securities Available-for-Sale at Fair Value of $46 million, Loans, Net of $31 million, and Cash and Due from Banks and Interest-Bearing Deposits.
- The decrease in Securities Available-for-Sale at Fair Value was primarily due to the sale of $30 million in securities in December 2023.
- The decrease in Loans, Net was the result of decreases in Commercial and Residential Real Estate loans of $50 million partially offset by an increase in Municipal Loans of $20 million, compared to June 30, 2023.
- Non-Municipal Deposits (excluding brokered deposits) decreased $23 million, or 0.4%, compared to June 30, 2023, the result of a decrease in Commercial Deposits of $15 million and a decrease in Retail Deposits of $7 million.
- Non-Municipal Deposits (excluding brokered deposits) were unchanged, compared to December 31, 2023.
- Wholesale Funding, which includes brokered deposits and borrowings, decreased $68 million compared to June 30, 2023, and $30 million compared to December 31, 2023.
- Net Income for the six-month period ending June 30, 2024, was $2.4 million or $0.86 per basic common share.
- Year-to-date Net Interest Income was $1.9 million lower than the same period last year driven by an increase in interest expense of $1.8 million.
- Year-to-date Net Interest Margin decreased from 2.70% to 2.60% as funding costs increased.47% while the yield on earning assets increased 0.27%, when compared to year-to-date June 30, 2023.
- Nonperforming loans as a percentage of total loans stood at 0.38% compared to 0.25% at June 30, 2023.
- Total delinquent loans as a percentage of total loans were 0.07% compared to 0.05% at June 30, 2023.
- The Bank's regulatory capital ratios at June 30, 2024 exceeded all well-capitalized ratios as defined under FDIC's prompt corrective action rules.
- The market price of our common stock, as of July 25, 2024, was $19.55.
| Northway Financial, Inc. Selected Financial Highlights (Unaudited) | ||||||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Six Months Ended | ||||||||||||||
| 6/30/2024 | 6/30/2023 | 6/30/2024 | 6/30/2023 | |||||||||||||
| Interest and Dividend Income | $ | 12,216 | $ | 12,940 | $ | 24,804 | $ | 24,888 | ||||||||
| Interest Expense | 4,826 | 4,545 | 9,177 | 7,430 | ||||||||||||
| Net Interest and Dividend Income | 7,390 | 8,395 | 15,627 | 17,458 | ||||||||||||
| Provision for Credit Losses | - | - | - | - | ||||||||||||
| All Other Noninterest Income | 1,117 | 1,253 | 2,374 | 2,499 | ||||||||||||
| Noninterest Expense | 7,710 | 7,836 | 15,796 | 16,310 | ||||||||||||
| Net Income Before Gain (Loss) on Securities | 797 | 1,812 | 2,205 | 3,647 | ||||||||||||
| Gain (Loss) on Securities Available-for-Sale, Net | - | - | - | - | ||||||||||||
| (Loss) Gain on Marketable Equity Securities | (11 | ) | 140 | 266 | (110 | ) | ||||||||||
| Income before Income Tax (Benefit) Expense | 786 | 1,952 | 2,471 | 3,537 | ||||||||||||
| Income Tax (Benefit) Expense | (73 | ) | 229 | 100 | 439 | |||||||||||
| Net Income | $ | 859 | $ | 1,723 | $ | 2,371 | $ | 3,098 | ||||||||
| Net Income Available to Common Stockholders | $ | 859 | $ | 1,723 | $ | 2,371 | $ | 3,098 | ||||||||
| Earnings per Common Share, Basic | $ | 0.31 | $ | 0.63 | $ | 0.86 | $ | 1.13 | ||||||||
| 6/30/2024 | 12/31/2023 | 6/30/2023 | ||||||||||
| Balance Sheet | ||||||||||||
| Total Assets | $ | 1,276,475 | $ | 1,290,467 | $ | 1,369,352 | ||||||
| Cash and Due from Banks and Interest-Bearing Deposits | 62,567 | 68,887 | 74,260 | |||||||||
| Securities Available-for-Sale, at Fair Value | 234,823 | 246,756 | 281,187 | |||||||||
| Marketable Equity Securities, at Fair Value | 2,856 | 2,589 | 5,606 | |||||||||
| Loans Held-for-Sale | 767 | - | 469 | |||||||||
| Loans, Net | 918,579 | 909,781 | 949,547 | |||||||||
| Total Liabilities | 1,204,177 | 1,217,230 | 1,301,879 | |||||||||
| Non Municipal Non-Maturity Deposits | 697,713 | 734,741 | 760,416 | |||||||||
| Municipal Non-Maturity Deposits | 154,469 | 133,100 | 149,713 | |||||||||
| Certificates of Deposit | 162,525 | 127,726 | 151,182 | |||||||||
| Securities Sold Under Agreements to Repurchase | 53,301 | 55,353 | 63,878 | |||||||||
| Short-Term Borrowings | 50,000 | 65,000 | 59,500 | |||||||||
| Long-Term Debt | 45,000 | 60,000 | 75,000 | |||||||||
| Junior Subordinated Debentures | 20,620 | 20,620 | 20,620 | |||||||||
| Stockholders' Equity | 72,298 | 73,237 | 67,473 | |||||||||
| Profitability and Efficiency | ||||||||||||
| Net Interest Margin | 2.60 | % | 2.63 | % | 2.70 | % | ||||||
| Yield on Earning Assets | 4.09 | 3.90 | 3.82 | |||||||||
| Cost of Interest Bearing Liabilities | 1.93 | 1.63 | 1.45 | |||||||||
| Book Value Per Share of Common Shares Outstanding | $ | 26.27 | $ | 26.62 | $ | 24.52 | ||||||
| Tangible Book Value Per Share of Common Shares Outstanding | 22.49 | 22.83 | 20.74 | |||||||||
| Common Shares Outstanding | 2,751,650 | 2,751,650 | 2,751,650 | |||||||||
| Weighted Average Number of Common Shares, Basic | 2,751,650 | 2,751,650 | 2,751,650 | |||||||||
| Capital Ratios for the Bank | ||||||||||||
| Tier 1 Core Capital to Average Assets | 9.21 | % | 8.30 | % | 8.16 | % | ||||||
| Common Equity Risk-Based Capital | 14.75 | 14.40 | 13.59 | |||||||||
| Tier 1 Risk-Based Capital | 14.75 | 14.40 | 13.59 | |||||||||
| Total Risk-Based Capital | 16.00 | 15.65 | 14.84 | |||||||||
About Northway Financial, Inc.
Northway Financial, Inc., headquartered in North Conway, New Hampshire, is a bank holding company. Through its subsidiary bank, Northway Bank, the Company offers a broad range of financial products and services to individuals, businesses, and the public sector from its 17 banking offices and its loan production offices located in Bedford and Portsmouth, New Hampshire.
Forward-looking Statements
Statements included in this press release that are not historical or current fact are "forward-looking statements" made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Northway Financial, Inc. disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated events or circumstances.
